The Standing Committee on Security and Foreign Policy has asked the Government to investigate why 12 mining licenses, granted near the Mardai uranium deposit apparently in violation of the law, have not yet been canceled. The head of the committee, Z.Enkhbold, told the press on Monday that they had visited the area in August and had asked the Government to cancel the licenses and submit a report. The Standing Committee also wanted action to be taken against the officials who had issued the illegal licenses,

The Mardai deposit was explored by Soviet geologists in 1971 and started production in 1974.  The concession reverted to Mongolia in the early 1990s after some 600,000 tons of raw uranium had been extracted. The Soviets had constructed a 130-km railroad, some of it under the ground, to transport the ore. Soon after coming into Mongolian control, 30 kilometer of the railroad was removed and the rest was privatized without permission of Parliament. Besides, 14 licenses were given, all illegally, for mining in areas surrounding the mine.

Even after a new law was approved, only two of them have been returned to the State. The Committee found during its visit that the remaining 12 licenses were still in private hands and was told that everything is fine.